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Datapulse Technology enters into settlement with three former directors
DATAPULSE Technology has entered into a settlement with three of its former directors in full and final settlement of their claims in a law suit.
Under the settlement, the former directors have agreed to file and serve a notice of discontinuance of the suit within seven days after receipt of payment of the agreed sum.
Datapulse added: "The company will not have any further liabilities to the former directors in respect of their claims in the suit after the settlement, and the suit will be discontinued once the notice of discontinuance is filed in Court. For the avoidance of doubt, the company made no admission of liability whatsoever pursuant to the settlement."
The settlement is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of the group for the financial year ending July 31, 2019 as the company had made the relevant provision in relation to their claims in the previous financial year. The provision exceeds the agreed sum.
On Nov 14 last year, the company received a letter of demand from its former executive directors, Ng Cheow Chye, Ng Cheow Leng and Si Yok Fong, demanding S$751,118, which they claimed was due and payable to them, arising from a profit sharing arrangement under their service agreements with the company. On Jan 31, 2019, the company paid around S$589,000 to the former directors.
On Feb 22 this year, the company was served with a writ of summons filed by the former directors. At the time, the balance sum of S$161,308 remained under dispute and was the subject of the suit.